Announcement of Introduction of Off-site Corporate PPA at Osaka Securities Exchange Building

Heiwa Real Estate Co., Ltd. (Head Office: Chuo-ku, Tokyo, President and CEO: Kiyoyuki Tsuchimoto, hereinafter "the Company") is pleased to announce that it has entered into an agreement for the introduction of its first off-site corporate Power Purchase Agreement (PPA) (hereinafter "this PPA") with Daigas Energy Co., Ltd. (Chuo-ku, Osaka, President and CEO: Hiroyoshi Fukutani, hereinafter "Daigas Energy"), a wholly-owned subsidiary of Osaka Gas Co., Ltd., for the Osaka Securities Exchange Building (hereinafter "this Building"), the Company's flagship building. The procurement of renewable energy electricity has commenced.

About Off-site Corporate PPA

The Company is promoting the implementation of decarbonization in buildings that serve as core functions of urban areas from the perspectives of cost, procurement stability, and additionality (newly constructed power sources). This PPA is a framework that allows for the procurement of electricity from newly constructed photovoltaic power generation facilities (dedicated power source) with additionality at a fixed unit price (without fuel cost adjustment fees, etc.) for approximately 20 years. It is positioned as a measure that simultaneously achieves the suppression of electricity market fluctuation risk and an increase in the renewable energy ratio.

[Osaka Securities Exchange Building]

Overview of Introduction

(1) Scheme: Off-site Corporate PPA

A method of procuring renewable energy electricity from newly constructed photovoltaic power generation facilities (dedicated power source) located off-site of this building, through Daigas Energy, an agent of Osaka Gas.

(2) Handling of Residual Electricity

Electricity not covered by this PPA will also be procured as renewable energy electricity, promoting the shift to renewable energy for all electricity used in this building.

[Scheme Diagram]

Objectives of This Initiative

(1) Introduction of Renewable Energy with an Emphasis on Additionality

This PPA aims to enhance the effectiveness of renewable energy introduction by utilizing a framework based on newly constructed power sources.

(2) Procurement Stability (Mid-to-Long-Term Planning)

Through long-term contracts, we aim to continuously secure renewable energy electricity and improve operational planning.

(3) Promotion of Environmentally Conscious Building Operations

The Company is advancing decarbonization in its owned assets by combining procurement measures with energy-saving investments and operational improvements. This initiative is part of that effort, with plans to cover approximately 8 million kWh annually with renewable energy, expected to reduce CO2 emissions by approximately 3,300 tons per year.

*Calculated using the Kansai Electric Power Co., Inc. published adjustment emission factor: 0.415 kg-CO2/kWh (FY2024 actual results)

Future Developments

Towards the realization of carbon neutrality in 2050, the Company has set a long-term goal of achieving net zero by 2050. Triggered by the initiatives at this building, we will promote the expanded use of renewable energy and the advancement of building operations, aiming to enhance the value of buildings as infrastructure that supports the business activities of tenants.

Commitment to SDGs (Sustainable Development Goals)

As a "Bazukuri Company," the Company addresses environmental and social issues and contributes to the realization of a sustainable society by enhancing satisfaction through two-way communication with each stakeholder.

Company Overview

Born in 1947 in Kabutocho, the heart of the Japanese economy, our company has brought vitality to securities districts nationwide as the owner of securities exchange buildings in Tokyo, Osaka, Nagoya, Fukuoka, and other locations, connecting eras. To pass on the trust we have built to the next generation, we aim to become an entity that brings prosperity to the future by weaving together historical assets and new value.

Company Name: Heiwa Real Estate Co., Ltd.

Date of Establishment: July 1947

Representative: President and CEO Kiyoyuki Tsuchimoto

Head Office Location: 1-10 Nihonbashi Kabutocho, Chuo-ku, Tokyo

Company HP: https://www.heiwa-net.co.jp/